TIDM15HG
RNS Number : 1289E
Great Places Housing Group Limited
03 November 2020
QUARTERLY PERFORMANCE UPDATE
This update covers performance for the period ending 30
September 2020.
Our Performance Updates are aimed at ensuring our investors and
other stakeholders receive regular, timely information regarding
the performance of the Group. We will publish these reports on a
quarterly basis and will produce them within six weeks of the
relevant quarter end.
The information included is based on unaudited management
accounts and other internal performance measures.
FINANCIAL PERFORMANCE: QUARTER TWO RESULTS
The management accounts of the Group show year to date surplus
of GBP11.6m, GBP1.2m better than budget. Turnover in the period was
GBP65.5m and operating surplus GBP32.3m.
Interest cost savings of GBP0.6m were achieved partly through
effective treasury management, keeping cash balances liquid but not
excessive and by using revolving credit facilities to actively
managing working capital. Development and investment expenditure
has picked up again in quarter two. The YTD surplus on property
sales is GBP0.4m lower than revised budget and this mainly relates
to delays in the legal sales process. Major repairs investments
works are in line with the revised budget. Other savings include
repairs and maintenance, lower bad debt expense than forecast, and
lower insurance costs from efficiency savings.
Drawn debt (excluding bond premium and including finance leases)
as at 30 September 2020 was GBP577.4m (June 2020: GBP592.7m). The
movement is mainly due to repayment of revolving credit facilities
as the rollover periods fell due.
The Group's Mark to Market exposure at the end of quarter two
has increased by GBP1.25m since March 2020 to GBP53.1m. We have
seen long and medium term interest rates fall over the period,
increasing exposure on interest rate derivatives. There was
GBP29.4m cash collateral posted to meet counterparties' security
requirements, up from GBP28.5m at the end of March.
Cash balances (excluding cash held on behalf of leaseholders)
were GBP27.2m at September 2020. Undrawn facilities immediately
available were GBP160.6m of which GBP127.2m is fully secured. This
does not include our GBP70m retained bond, which we can sell at any
time. Our internal financial "Golden Rules" around interest cover,
gearing and operating surplus were all met at the end of the
period.
OPERATIONAL PERFORMANCE
Our performance management centres around our Critical Success
Factors ("CSFs") which are designed to focus us on the delivery of
our Corporate Plan, and particularly our vision of "Great Homes,
Great Communities, Great People". We have ten CSFs for 2020/21, as
well as three-year targets and ten-year ambitions within our
Corporate Plan. The CSF targets for 2020/21 were set in March prior
to knowing the extent of the global pandemic. They were reviewed in
quarter two and Board approved changing the targets for Group
Surplus, Average Re-let Time and % of Digitally Active Tenants. The
stretch target for Development Completions has been removed.
Despite the impact of COVID-19 and local lockdowns across most
of our regions, performance in quarter two has been largely
positive. There are certain areas such as development completions
and colleague sickness where performance has been clearly
impacted.
There have been 136 Development Completions as at the end of
quarter two, below the revised target of 178. Given the ongoing
disruption on sites due to COVID we continue to review forecast
full year completions. There were 31 additional development
completions not included in the CSF, being developments from the
Equity region that were started before the merger of Equity into
Great Places.
At the end of September, the average days sickness per employee
was 8.9 days, compared to 10.2 days at the end of quarter one. This
is close to the year-end target of 8.8 days.
Our average re-let time has decreased over the quarter to 25.6
days, down from 34.3 days at quarter one when the lockdown
restrictions had the most impact. The target CSF for average
re-lets is 25 days and we are currently re-letting properties at
pre-lockdown performance.
While the above CSFs have been impacted by COVID-19, the other
seven CSFs are all better than or on target highlighting our
positive performance over quarter two despite the external
circumstances. Trusted Stock Condition surveys is at 93.3%, a
significant step closer to the annual target of 95%.
Despite the challenging circumstances, we have helped 371
households into work, training and volunteering so far this year
which is on track to at least achieve the year-end target of 750.
Colleague engagement is currently at 78%, above the year-end target
of 70%. Group surplus remains on track against the updated
2020/2021 budget.
The % of digitally active tenants was 39.2% at the end of June,
better than the year-end target of 35%. This revised CSF looks more
closely at the contact behaviour of individual customers over the
last 12 months. A digitally active tenant is defined as a tenant
whose contacts over the last 12 months are 50% or more through our
digital channels.
At the end of quarter one current tenant arrears was 4.5%,
representing a cash value of GBP3.55m. Universal Credit customer
arrears are within our CSF assumptions, and we acknowledge that
further lockdown restrictions on lower paid sectors of the economy
may impact on arrears as we progress through this financial
year.
Customer satisfaction was 7.3/10, compared with 7.5/10 at the
end of quarter one. We are working on understanding the impact
external issues have on our overall satisfaction, and what
currently drives satisfaction or dissatisfaction and what we might
do in response.
CORPORATE NEWS
These stories illustrate some of our recent activities,
particularly in terms of Environmental, Social and Governance.
GOVERNANCE
Rating Agencies Credit Opinions Updated
We are delighted that both rating agencies have issued their
ratings for Great Places in October and November 2020.
Moody's have affirmed our A3 credit rating with a stable
outlook, demonstrating the on-going financial strength and
resilience of the Group. For more information please see the
Moody's Credit Opinion Great Places Housing Group October 2020.
Fitch affirmed the Great Places A+ credit rating, please see
this Fitch Rating Action Commentary. The full credit opinion report
will follow and be published on the Great Places website in due
course.
Annual report and financial statements for year ending 31 March
2020
At the AGM of Great Places Housing Group Limited ("Great
Places") on 17th September 2020, the shareholders agreed and
adopted the Annual Report and Financial Statements for the year
ending 31st March 2020. These reports are published on our website,
Corporate Investor pages and were announced on RNS.
Revised business plan 2020/21
The revised business plan 2020/21 is available to download from
our website. The business plan has been revised taking into account
the known impacts of the Coronavirus pandemic around development
delays and the resultant impact of sales, on our investment
programme and on other areas of operational performance.
Newly Developed Affordable Housing Development in Ordsall,
Salford
The Deputy City Mayor of Salford (and Lead Member for Housing
& Neighbourhoods), Cllr Tracy Kelly, joined representatives
from Great Places Housing Group, Dérive and Watson Homes to visit
the first phase of a new affordable housing development at Jane
Street, Salford. Delivered by Great Places and Dérive and built by
Watson Homes, the new development (scheduled to complete in October
2020), will provide a mix of 43 much needed two and three bed
houses and one and two bed cottage flats for affordable and social
rent..
Work starts on GBP5.5million Royton, Oldham development
Work has started on a GBP5.5million housing development in
Royton, Oldham. Great Places is working in partnership with
Grasscroft Property and Wiggett Construction to deliver 39 new
homes on Edge Lane, Royton, a site that has been derelict since
2014. The development consists of eight two-bed, 17 three-bed and
two four bed houses as well as six one-bed and six two-bed
apartments, all for affordable rent.
Great Places Housing Group sign agreement with Urban Splash to
offer affordable homes on latest phase of New Islington,
Manchester
In September 2020, Great Places signed a deal with developer
Urban Splash to provide affordable housing on the latest phase of
the New Islington neighbourhood development. The agreement
increases the proportion of affordable housing provision at New
Islington to 31%. The new properties at Piercy Street are to be
marketed as shared ownership by Great Places by its first-time
buyer division Plumlife Homes. Each of the shared ownership homes
offers the same specification as the open market homes and feature
three or four bedrooms as well as a private terrace, car parking
and access to the Piercy Street residents' garden overlooking the
Ashton Canal.
ENVIRONMENTAL
Great Places scoops cycling prize
Great Places has scooped the top prize (for the company with
between 500-2,000 colleagues in the North of England) in the recent
Cycling September Challenge. The September 2020 challenge run by
Love to Ride aimed to encourage people to take to two wheels
whether it was to commute or just for fun. In this challenge 25,000
participants helped to (re)introduce over 2,000 new riders to the
benefits of cycling. Together participants clocked up 3.8 million
miles, saving over 65,000kgs of carbon dioxide emissions. As well
as winning the regional top spot Great Places also achieved second
place in the whole of the UK and fourth globally out of almost 500
participating organisations.
SOCIAL
Great Places' Resilience Fund announces successful community
groups to receive share of GBP100k
Great Places Housing Group has announced that 13 community
groups and charitable organisations have been successful in their
bid to take home a share of its GBP100,000 Resilience Fund. The
fund, set up following the COVID-19 outbreak, will help the groups
provide much-needed support to those customers who have been hit
hardest by the Coronavirus pandemic in their communities. The fund
has been made possible with the generous help and support of some
of the group's partner organisations, including Countryside,
Emanuel Whittaker, Connelly and Truline. The 13 organisations set
to benefit from the cash injection support the group's guiding
principles for the fund and will ensure their priority
neighbourhoods and customers have access to the help they need.
Each of the organisations target one of the following key themes;
poverty reduction including fuel, furniture and food; employment,
training and volunteering opportunities; financial and digital
inclusion and organisational resilience.
Great Places double winners at the Housing Heroes Awards
2020
Great Places were double winners at this year's Chartered
Institute Housing Heroes Awards. The Great Places Repairs team
scooped the coveted Development or Maintenance Team of the Year and
tenant Stuart Hutton-Brown won the Tenant Innovator of the Year
gong for his work in setting up the Counselling in the Community
service in Blackpool. The awards, which recognise excellence in the
housing sector, were announced at a virtual awards ceremony on 10
September.
Arts project exploring LGBT+ visibility within older
communities
Great Places is one of a number of older person's housing
providers in Greater Manchester partnering with a group of local
artists on a project to create work encouraging more inclusivity
within sheltered housing and independent living schemes. The Back
in the Closet project by the LGBT Foundation will see an artist
work with staff and residents to create an 'artistic response' to
the experiences of residents. Great Places joins other local
housing associations in the project, which is in partnership with
HouseProud and Greater Manchester Combined Authority.
FEEDBACK
We welcome feedback on our performance update. Please contact
Kal Kay, Director of Finance, on 0161 447 5029 or at
kal.kay@greatplaces.org.uk
The information included within this report is for information
purposes only. The Financial results quoted are unaudited. The
report may contain forward looking statements and actual outcomes
may differ materially. No statement in the report is intended to be
a profit estimate or forecast. We do not undertake to revise such
statements if our expectations change in response to events. This
report does not constitute legal, tax, accounting or investment
advice.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR BXBDBDSGDGGX
(END) Dow Jones Newswires
November 03, 2020 08:46 ET (13:46 GMT)
Great Places 42 (LSE:15HG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Great Places 42 (LSE:15HG)
Historical Stock Chart
From Jul 2023 to Jul 2024